Investor allocations to Real Estate and Infrastructure are expected to rise, according to asset managers taking part in the latest CAMMI report from Gen II Fund Services (Gen II), a global private capital fund administrator.
CAMMI, short for the ‘Core Asset Managers’ Mood Index’, is a forward-looking sentiment gauge based on responses from 110 alternative fund managers. It has recently recorded a Real Estate/Infrastructure score of 57.77, indicating a strong net increase in allocation expectations amongst managers through Q1 2026. The findings place real assets among the most optimistic asset classes in private markets today.
44% of fund manager respondents expect increased allocations to real assets in the coming year, while just 28% foresee a decline. The outlook reflects a growing institutional preference for yield-generating, inflation-resistant strategies, with real estate markets stabilising and infrastructure benefiting from long-duration cash flows.
Other Key Highlights:
- The Real Asset’s sector recovery reflects managers view that asset values and exit conditions are improving.
- Real assets are being driven by renewed investor focus on long-term yield, income stability and inflation hedging in an uncertain macroeconomic environment.
- According to the report, value-add and operationally net-zero assets are gaining traction as investors seek pricing dislocations.
- Supply constraints, particularly in high-quality commercial stock, are projected to fuel rental growth throughout 2025, reinforcing income visibility in real asset strategies.
“The CAMMI Index Score for Real Assets clearly reflects the emerging optimism within the European Real Estate market,” said Ben Mardon (pictured), Head of Real Assets, Europe, at Gen II. “We expect this positive momentum to carry through 2025 and potentially into 2026, reflecting the appeal of Real Estate investments across the UK and Europe.”
The report also notes that 27% of managers intend to launch new Real Estate or Infrastructure funds over the remainder of 2025 through Q1 2026, suggesting sustained institutional confidence in the sector’s medium-term fundamentals.
While headwinds remain, the report suggests that declining rates and structural innovations in fund financing, such as NAV-based lending and continuation vehicles, are helping managers navigate liquidity challenges and reposition for growth.
As private capital continues to adapt to new macroeconomic realities, the latest CAMMI data point to real assets as a strategic anchor for investors seeking resilient, yield-oriented exposure within diversified portfolios.
